Murray spent only six months in the job before resigning due to the club’s disappointing start to life in the Scottish Championship.
The board have wasted little time in appointing his successor, waiting only six days before announcing Rae as the new gaffer.
It’ll be Rae’s first job in management since being sacked by Dundee in 2008.
At Dens Park he twice led the club to top three finishes in the first division but was dismissed following a poor start to the 2008/09 campaign.
He’s worked in various coaches roles since then, under Paul Ince at MK Dons, Notts County and Blackpool, and assistant manager to Alex McLeish at Genk.
Rae started his playing career at Falkirk before moving down to England with successful spells at Millwall, Sunderland and Wolves.
He moved to Ibrox in 2004 and helped the club to a league and League Cup double in his first season.
He left to become player-manager of Dundee at the end of his second campaign.